Exactly, not that it is bad or anything but we just have to be aware that there is risk attached to using high leverage. So we should definitely be careful with it.
Hmm for as far as I know, big margin means high volume which also means a high leverage. Do I miss something? Please correct me if I am wrong.
Yes … sorry, but I think you’ve fundamentally misunderstood what “leverage” and “margin” mean (and maybe “volume” too). [b]This little article will almost certainly help you[/B].
SMH, I had to go and check it out, ( High Leverage) Traders way allows me too.
4 losses, which all were from commission>trade profit, due to trail stop,
It would take 20 days to make $587,665,062.52 starting with $100
lol, thats funny,
I know what they mean, but by reading again I think I get your point and it is all about the way I read what you wrote. Nvm
High leverage isn’t that bad if you are good in controlling your money management. It can only cause a problem when you use a very high lot in your trading hoping to get a big win.
Not bad if we have sufficient knowledge and practical experience about forex then we can enjoy this business with high leverage, I also do like to use the high leverage as I can earn reasonable amount with big leverage, keep in mind that I am also trading with big investment.
You miss the peculiarity of people’s personality which is called greed. Leverage allows greed to flourish as it provide means for the person to speed up losing/winning i.e. granted a tiny chance of making 1000 from 100 what he will by all means take advantage of.
Just stick to your pace of trading and don’t change your risk/reward setup unless you gain confidence in what you are doing.
What if there is no proper risk management, then the leverage becomes a problem. Is that what you are implying?
It is bad only when we take the maximum risk and trade greedy mind, if we will do forex with big lot size then high leverage will cause the reason of big loss, so we should avoid using the high leverage, we should use the moderate leverage i.e. 1:500
Is moderate leverage 1:500, profitfx?
I don’t think you realise what you’ve said
Wise man once said " better to keep quiet and be thought a fool that to open your mouth and remove all doubt!"
Mostly traders especially the newcomers consider high leverage as much risk. But according to me I don’t consider it. If there is any risk, it is completely with non-sense planning and zero risk management plans, nothing to do with high leverage at all.
Leverage is like a gas pedal in your car. You aren’t obligated to use all that leverage just like you aren’t obligated to make your car go as fast as possible. Like driving your car too fast, if you use too much leverage, you risk a serious accident.
High/low leverage should be absolute irrelevant, as the skill levels decide if it’s risky or not, if you are skillful then you will be able to do well regardless of the size of the leverage. But if skill level is down then I am sorry but it is impossible to make profits consistently even with high leverage or with low leverage. So the only way forward is to get the skill level right in order to really succeed.
If you are comfortable with 1:100 trading leverage than stay with this ratio! Don’t need to change your winning combination in your live trading! Yes, you may see lots of negative comment on high trading leverage, but concentrate on your own process! My trading equity is 60K and I use 1:300 trading leverage; because I found best result in my demo with this leverage ratio!
As above said, it’s all about your comfort and skill. Yes very high leverage might not prove good for your trade but it is only when you have poor risk management. One must understand the fact that along with high returns high risk is also there. Leverage is like a double edged sword and can bring fatal losses when market moves against you. Choose moderate amount of leverage best suited as per your trading strategy.
So 60K x 300 leverage equals 180 lots each trade. Which if trading the EU with a USD based account means a 25 pip loss would see a margin call blowing your account. I think not bro.
Actually a leverage ??? Only helps those who’ve got a small depo, in order to enter a deal with a small lot.